Closing Costs - What do they Include?

While it is usually the biggest cost you will incur when you purchase a house in Florida, the down payment is just one of your expenses. After saving for your down payment, house hunting for weeks, and applying for a mortgage loan, closing costs can often come as an unpleasant surprise.
As a homebuyer in Florida, you may have many questions, such as what are closing costs for buyer. Closing costs are fees associated with originating, underwriting, and closing your mortgage loan
And these closing costs can vary in Florida depending on whether you are purchasing or refinancing a home. Also, how much you pay may be affected by the type of loan you choose and your personal finances. This means that many factors impact average closing costs in Florida. 

What are Mortgage Closing Costs?
Closing costs in Florida include many fees, such as attorney fees, for services, many of which your lender provides or requires. You will also have some closing costs associated with your Florida home’s title insurance policy, any appraisers or attorneys required along the way, and taxes. Closing costs vary based on the type of loan, the age, location, and size of your home.

What is Included in Closing Costs?
There are several individual fees and charges that make up your closing costs in Florida. These fees may be charged by your lender or other third parties, such as appraisers, for services rendered. Here are some common closing costs.

Application Fee
This fee covers the cost of processing your loan request and could include administration fees.

Appraisal Fee
Lenders or banks require home appraisals in Florida to determine your home’s fair market value and, in turn, the amount they are willing to let you borrow. Note that a home appraisal usually costs around $300 to $500.
Assumption fee If the home seller has an assumable mortgage and you assume the outstanding amount of the loan, you might be charged a variable fee.

Credit Report Fee 
This is the fee for pulling your credit report.

Earnest Money
This is the sum you may put down as part of the initial offer and apply toward your closing costs. It is usually 1% to 2% of the purchase price. 

Home Inspection 
A professional inspector will visit the home and is responsible for uncovering any potential problems and issues, such as mold, a leaky roof, or structural issues.

Recording Fees 
Local governments often charge a fee in order to record transactions in public records.

Who Pays Closing Costs?
This is an important question. You may also wonder if there are any closing costs for seller. In most cases, homebuyers are responsible for paying the closing costs in Florida. However, sometimes the seller may pay the closing costs as well.
For instance, some sellers may be ready to help pay your closing costs in exchange for a higher sale price on their Florida house.